This study examined the role of risk culture about the financial sustainability of private
universities, focusing on the Catholic University of Eastern Africa (CUEA) in Nairobi, Kenya.
Using a descriptive research design, it targeted full-time employees of CUEA, with a sample size
of 20 participants. Primary data was collected through surveys, ensuring respondent
confidentiality, and analyzed using IBM SPSS to generate descriptive and inferential statistics.
Findings revealed that CUEA had established a risk management framework supported by
formal policies, procedures, and training programs aimed at enhancing staff awareness.
However, challenges persisted in standardizing execution practices and aligning perceptions of
training effectiveness. The study uncovers numerous barriers that prevent universities from
developing effective risk cultures. Staff members' resistance to adopting new risk management
practices and insufficient training in risk identification and mitigation remain documented as
barriers to building a robust risk culture. Staff reluctance to report risks and inconsistent
application of risk management policies have created vulnerabilities in risk mitigation practices.
Research findings indicate that university staff exhibits an understanding of risk management
value but further targeted initiatives are needed to drive widespread proactive risk culture
development.
The study identified a strong positive correlation between an effective risk culture and financial
sustainability, demonstrating that organizations with robust risk management practices achieved
improved decision-making, financial stability, and long-term viability. These insights
underscored the need for CUEA to address operational inconsistencies to further enhance its
financial sustainability. The research recommends establishing an inclusive framework which
will boost both risk culture and Catholic University of Eastern Africa's financial sustainability.
This strategic framework requires structured risk management policies with consistent
implementation together with sustained training on risk mitigation and identification alongside
proactive methods for reporting and feedback collection regarding potential threats.